Which of the Following Is Least Likely to Be Correct

question 46

Multiple Choice

Which of the following is least likely to be correct about the factoring of receivables?

• A) The selling firm bears the risk of default.
• B) The higher the perceived quality of the receivables, the lower the discount rate.
• C) The discount is paid by the selling firm in the form of reduced sales price.
• D) Factoring may be the cheapest method of avoiding a cash flow problem.

Comprehend the decision-making processes related to nursing accountability.

Understand the significance of a collaborative practice model in nursing.

Understand critical thinking and its characteristics in nursing practice.

Utilize self-reflection to improve clinical decision-making.

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Definitions:

Informationally Efficient

The concept where a market is said to be informationally efficient if all relevant information is fully and immediately reflected in a security's market price.

Allocationally Efficient

Refers to a market scenario where resources are distributed in a way that maximizes the benefits to all participants, considering their preferences and needs.

Random Walk

A theory suggesting that stock market prices evolve according to a random path, making it impossible to consistently predict future movements based on past trends.

Stock Price Changes

Variations in the market price of a company’s stock over time.